How to Improve your Business Acumen

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How to Improve your Business Acumen
Entrepreneurial Thinking
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Business Acumen Defined
Understanding the organizations business
model and financial goals utilizing economic,
financial, and organizational data to build and
document the business case for investing in
workplace learning and performance solutions
using business terminology when communicating
with others. (Bemthal et al., 2004)
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Components of Business Acumen

• Thorough insight into organization
• Comprehensive understanding of the organizations
  operations
• Ability to apply and interpret financial data
• Correct use of business terminology
• Identify the priorities of the organization
• Creating a value proposition
• Advancing the learning and performance agenda of
  the organization

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Gaining Insight into the Organization

• Increase knowledge of the organizations business
  model,
• strategic plan, and competitive position in the
  marketplace
• Know how the business leverages core competencies
  for
• growth and profitability
• Know what the value statement is to external
  customers

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Understanding Business Operations

• Develop knowledge of the organizations
  structure, systems,
• functions, and business processes
• Be familiar with planning processes and
  decision-making
• channels
• Know the information management systems
• Understand how products and services are
  developed, sold,
• and delivered to customers

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Applying and Interpreting Financial Data

• Know the financial goals of the organization
• Understand financial data and how it relates to
  business
• success measures
• Ability to interpret balance sheets, graphs,
  charts, tables, etc.
• Ability to perform quantitative calculations in
  building a
• business case, preparing budgets, evaluating
  the impact of a
• program, and determining return-on-investment
  (ROI).

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Use of Business Terminology

• Ability to translate business jargon into
  business terminology that
• stakeholders and customers will understand and
  respect
• Know and speak the language of the organization

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Identifying Organizational Priorities

• Thorough knowledge of the needs and expectations
  of
• customers
• Ability to track changes in the needs and
  expectations of
• customers
• Determining links between internal demands and
  external
• needs
• Understand the business priorities of internal
  clients and how
• the organization can assist them with achieving
  greater
• success

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Create a Value Proposition

• Determine link between business needs and
  particular solutions
• Document how particular solutions achieve results
• Identify outcomes that result from implemented
  solutions
• Ability to create a compelling business case

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Advancing the Learning and Performance Agenda

• Insight into how decisions are made within the
  organizational
• structure
• Know how power is exercised
• Ability to use ones understanding of
  organizational politics
• across business units and key decision-makers
• Identify key stakeholders and their priorities
• Ability to present and successfully defend
  learning and
• performance solutions

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Common Mistakes in Developing Business Acumen

• Lack of understanding of basic business
  terminology
• Overuse of buzzwords
• Incorrect use of return-on-investment (ROI) speak
• Failure to understand what key stakeholders
  definitions of ROI
• are
• Unconditional love or inflexible use of one
  specific approach,
• method, idea, or product.

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How to Increase Business Acumen

• Increase understanding of financial terminology
  and organizational
• performance metrics
• Work at the pace of the organization
• Understand the financial picture of the
  organization
• Volunteer

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Understanding Financial Terminology and
Performance Metrics

• Enroll in a finance course
• Practice reviewing and interpreting financial
  data such as departmental
• financial statements, balance sheets, etc.
• Develop and monitor a personal budget and ask
  internal experts for feedback
• Observe the strategies of colleagues who make
  successful financial
• decisions
• Partner with a financial manager to gain insight
• Ask a financially savvy colleague for tips and
  feedback
• Volunteer for cross-training opportunities

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Working at the Organizations Pace

• Work with clients collaboratively to identify and
  communicate
• progress of a particular plan
• Earn the right to be included in financial
  business-planning
• processes
• Administer an ROI analysis for an idea you want
  to implement
• Present the analysis to senior leaders.

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Understanding the Financial Picture

• Understand the organizations financial goals,
  profit margins, and
• how they measure against the competition
• Read industry specific publications to track
  trends
• Know your customers
• Take on leadership roles
• Attend professional conferences
• Network with industry professionals

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Volunteering

• Volunteer to manage the finances of a community
  organization
• Volunteer to work on a community project that
  involves
• significant business activity
• Review the financial health of a community
  organization and
• provide feedback for improvements

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Benefits of Developing Business Acumen

• Promotes teamwork
• Fosters knowledge sharing environment
• Gain understanding of how your department
  contributes to
• organizational objectives
• Ability to see how your actions make a difference
• Continued

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Benefits of Developing Business Acumen

• Aligns your goals with those of the organization
• Significantly increases chances for upward
  mobility
• Increases motivation to learn
• Creates comfort engaging in business or company
  specific
• discussions

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• Without strong business acumen, workplace
  learning and performance professionals are merely
  transactional service providers who can be easily
  purchased in the marketplace. Tom Thivierge,
  Director of Succession Planning for General
  Motors

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Entrepreneurship Defined
doing things that are not generally done in the
ordinary course of business routine. (Penn
State University)
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Develop Entrepreneurial Thinking

• Have a thorough understanding of the organization
• Know how the organization operates and generates
  income
• Know your competitors
• Engage in intelligent risk-taking
• Become an innovative thinker
• Think like the owner

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Understanding the Organization

• Familiarize yourself with the history of the
  organization
• Get involved
• Ask to learn how to interpret important documents
• Know the mission statement
• Identify ways you can contribute to the mission
• Lead task forces

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Understanding Operations

• Attend training offered
• Know the strategic plan
• Know your departments business plan
• Continually look for ways to develop yourself

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Knowing the Competitors

• Ask customers how your organization measures up
  to competitors
• Obtain and review the competitions promotional
  literature
• Use information about competition to look for
  ways for your
• organization to gain the competitive advantage
• Stay current with industry changes
• Join professional associations

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Engaging in Intelligent Risk-taking

• Make decisions that involve risks
• View mistakes as opportunities to learn
• Expect setbacks
• Take initiative
• Know the difference between a healthy risk and a
  foolish chance

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Be an Innovative Thinker

• Foster a creative environment
• Look for new ways to improve old routines
• Have faith in your capabilities
• Identify ways to empower yourself
• Never assume that an idea wont work just because
  its never
• been tried before
• Suspend critical judgment of ideas

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"I know I will be _________. Therefore I will be
___________. Fill in the blank." Ryan P. Allis,
entrepreneur
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Bibliography

• Bemthal, Paul R., Karen Colteryahn, Patty Davis,
  Jennifer Naughon, William J. Rothwell, and Rich
  Wellins. ASTD 2004 Competency Study Mapping the
  Future New Workplace Learning and Performance
  Competencies. Alexandria, VA ASTD Press, 2004.
• Encouraging Entrepreneurial Thinking.
  Motivational Magic Resource Database. October 17,
  2008. http//www.motivationalmagic.com/library/ebo
  oks/motivation/McGraw-Hill20-20Briefcase20Books
  20-20Motivating20Employees.pdf
• Entrepreneurship. Penn State University.
  October 22, 2008. http//www.mne.psu.edu/lamancusa
  /Entrepn/Module1/Lecture/Entre.doc
• Green, Raymond D. Beyond Financial Literacy The
  Importance of Business Acumen Training for
  Managers and Employees. Paradigm Learning.
  October 22, 2008. http//paradigmlearning.com/docu
  ments/WP_Business20Acumen.pdf
• Stern, Barry and Bob Walters. Build Your
  Business Acumen Workplace learning and
  performance professionals need to think and talk
  like their internal customers. Heres how. June
  2005. American Society for Training
  Development. October 17, 2008. http//www.astd.org
  /NR/rdonlyres/7EA68B02-ED44-4DAE-B5B4-041A4056C349
  /12335/Business_building.pdf